I certainly agree with that title. Had that been the entire article in and of itself, I would have said "the Bloomberg editorial board gets it".

Unfortunately, the editors didn't stop with the headline. Instead the editors proposed "The ECB needs to surprise financial markets with a bigger-than-expected announcement."

It gets better ...

The board says Draghi should go for outright shock and awe. .... He could say that monetary policy, as he understands it, includes the option of "helicopter money" -- and that the bank would shortly begin sending out checks to every EU citizen.

Such a scheme would be illegal of course. But hey, that's no problem.

Legal or not, helicopter money would be a frontal repudiation of the
monetary conservatism that Germany's government and others have sought
to impose on the bank.

Not even Draghi can save Europe, but let's do illegal things anyway to prove it. Wow.

Eurozone Structural Problems

The problems in Europe are insurmountable, and well understood by many.

No fiscal union

Wildly differing social agendas of member states

Wide variances in
productivity

Wage discrepancies

Retirement benefit discrepancies

One size fits all monetary policy

To make treaty changes every eurozone country must agree

Target2 imbalances

What the hell good would even €5 trillion in QE do to fix those?

What good would it do if the ECB bought every bond from every country and pushed rates to zero across the board? How would it fix any structural problem?

More QE Will Not Help the World, says Mervyn King

I seldom agree with central bankers, especially when they hold that position. On occasion, however, once outside their official role, they regain some sense of sanity.

More monetary stimulus will not help the world economy return to strong growth, former Bank of England governor Mervyn King said, days before the European Central Bank is expected to decide whether to embark on a massive bond-buying programme.

"We have had the biggest monetary stimulus that the world must have ever seen, and we still have not solved the problem of weak demand. The idea that monetary stimulus after six years ... is the answer doesn't seem (right) to me," he added.

Pettis, Jakobsen Chime In

Saxo Bank chief economist Steen Jakobsen made the claim the other day that QE was actually counterproductive.

The problem with the global economy in general is debt. You cannot cure a debt-deflation problem via attempts to force more debt into the system. It is axiomatic the cure cannot be the same as the disease.

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